$USD prediction and bias neutral. Waiting to break trendWe are currently range bound I will be waiting for the dollar index to break structure before I enter a trade.
Dixie
PCG - Going as Planned***None of the idea I share, including this one, should be taken as financial advise. Tread lightly and if ever you find yourself certain of something, think again.***
Previous Idea and Trend
In my previous idea (linked) on PCG I said I'd expect this stock to struggle downward most of the summer and reach a strong support level in the low $9.00 range. This has been the case so far and there's not much that's changed to affect my view, at this point.
Reiteration
I still believe the current price level is this stock's bottom until there are other catalysts. It will remain around this level for the remainder of the summer with a possible break-out later this year (October or November).
Other News
PCG's decision to burry 10,000 miles of cable to mitigate fire risk is, in my view, an attempt to save face given the present concerns over PCG's role in the Dixie fire and sensitivity around the wildfire subject at large. I say this because cable burial, even when done as cheaply as feasible, is very expensive when compared to overhead installations. My preference would have been for PCG to make large investments in overhead protection of assets (specifically fuse-linked cutouts and surge-arrester failures). There are plenty of asset protection devices that almost completely mitigate the chance of asset failure and subsequent fire creation. This could have been done with fractions of the cost of cable burial and could have been done system wide instead of only across select segments (where the likelihood the most effectual burial segments could be miss-identified is high).
In my estimation, this move's short-sightedness it mitigated by the comfort provided from concern management is showing toward future fire prevention.
Dixie Fire and PCG
From what I've read, it seems very unlikely PG&E had a role in starting the Dixie fire; more so considering the exact verbiage of any legal challenge would include the word "negligent". Thus far, legal "challenges" have been political in nature rather than legally interesting: All fear, loathing, and grand-standing. Even if PG&E is found to have behaved negligently resulting in the Dixie fire, the structure of AB 1054 provides reasonable downside protection.
The Fed's Role
As always, in this current market, we have to consider Fed actions. If talk of asset tapering manifests into actual tapering I would expect this stock to fall. We shall see.
Position Additions
I'm still not looking to add to my position until the common stock reaches mid-to-low $7.00 range.
DXY Weekly OutlookThank you for the support, please leave a like if this helped you at all! :)
Basic Price action turning points for the week noted above. Will see if we move into any key levels on Monday for an entry.
Dixie Brands Descending Triangle Pattern#DIXI.U - Dixie Brands closed Friday below a descending triangle support line(lower orange line), which up until Friday had been propping price up as traders had previously been holding above $0.135 which is where the lower triangle line is drawn.
A descending triangle is a bearish chart pattern that is created by drawing one trend line that connects a series of lower highs and a second horizontal trend line that connects a series of lows. Oftentimes, traders watch for a move below the lower support trend line because it suggests that downward momentum is building and a breakdown in price is possible. Descending triangles are a popular chart pattern among traders because they show that the demand for a stock is weakening. When price breaks below lower support, it is an indication that downside momentum is likely to continue.
Dixie price is now below the lower triangle line which is a bearish indication, but when trend-trading 2-3 days below a support line is needed before it can be considered confirmation of loss of price support and continuation of the downtrend.
While price closed below the lower triangle line on Friday, traders also created a long, lower price candle wick which indicates that as bearish traders attempted to push price lower, bulls stepped in and kept price near the upper end of the daily trading range. Usually when you see long wicks near the top of an uptrend or bottom of a downtrend, it indicates that a top or bottom in price is attempting to be made, respectively.
The decline in Dixie price over the past few months can mainly be attributed to overall sector weakness as the entire cannabis sector has been on a decline since mid-2019, and this is a sector that mostly follows the top market cap cannabis stocks, namely Canopy Growth Corp. The recent stock market sell-off hasn't helped the sector either as traders have been reluctant to buy much of anything over Covid19 fears and its affect on global supply chains.
If you're a long-term holder of Dixie, the name of the game is to add at these low levels and lower your cost average. If you're a trader, a long entry can be made here in anticipation of a global market reversal early this week due to the oversold nature of most markets right now. Short-term trader stop-losses should be placed just below Fridays wick, or just under the $0.10c level. A breach of that level would likely indicate further downside in price.
Dixie Trend Line TestDixie Brands is testing the upper line of a falling wedge pattern while moving upward within an uptrend channel. As a sign of strength, price needs to continue to hold above the falling wedge and eventually break above short-term resistance at $0.24 in order for price to see upward continuation and be considered bullish. A failure in price to move above resistance will likely lead to a re-test of support at $0.18; a move below $0.18 would indicate that price has lost upward momentum and is at risk of heading lower.
$DXY ABOVE 99 EATING THE BEARS ALIVEI thought Mr Trump could jawbone um down but the only way we get weaker dollar is if huge infrastructure bill passes. US Govt (admitting or not) has already embraced MMT since Nixon.
USD Ready to pop? Possible upcoming powerful rally $DXYHey traders, we may have seen the completion of bearish Wave-B last week which means this a potential powerful rally may be forthcoming in the next week or two. Alternatively, a bearish breakout would require a recount. My bias is to the upside despite the political uncertainty.
Looking for a Bullish Breakout in the Dixie This WeekHey traders, I like the USD long this week. However, it may not be until the end of the week until we an capitalize on a bullish breakout. The first level of resistance has not yet been tested. After this level is broken, I want to get long. Cheers
$DXY: Making Sense of the Dixie #eliottwave #EW Hey Traders, here's an updated count on our beloved Dixie. I like a short in both the short-term and the long-term. We may see a pop on the bottom triangle barrier into wave-(E) of the triangle. Compare this against the other indicies and you'll find some nice trades on USDJPY and AUDUSD. Cheers
Looking for a Dixie Group BottomThis is a textbook Elliot wave impulse move to the downside with clear alternation.
We are clearly on a wave 5, however, I'm not quite sure if we have completed the wave yet. It appears to be close to popping out of the channel, which suggests sellers are drying, but usually wave 5 is equal to the length of wave 1, so I'm waiting to see what happens after earnings.
If we do drop down to the buy box, it will be a solid buy to ride up to the 11 mark for a 38% retrace (then going down some more) We could have a good ER and we will see a pop, I might jump in depending on how much it pops. Lets see how this works out. I have no idea what this company does, nor do I care. I'm just reading a chart.
Good luck
